(A) The city may grant a franchise for a period not to exceed 15 years.
(B) The city shall make the grant of an initial franchise conditioned upon the completion of construction of all facilities required under § 115.42 within 12 months of the award of a franchise. Each initial franchise shall require as a condition of the franchise the posting of a performance bond for the city's benefit in an amount equal to one-half of the estimated construction cost for reimbursement of any city expenses incurred in the event of default, including, but not limited to the removal of partially constructed facilities. The franchise agreement shall specify that failure to timely comply with the franchise construction conditions will cause the franchise to become null and void without further action by the city.
(C) In evaluating an application for an initial franchise, the city shall consider the applicant's character; the applicant's technical, financial and legal qualifications to construct and operate the proposed cable system; the nature of the proposed facilities, equipment and services; the applicant's and its principals' record in other communities, if any; the impact of construction on public rights-of-way in the city. including any disruption or adverse effect on future use of utility poles and public easements; the economic or aesthetic impact upon public and private property within the city; the economic feasibility of the application; impact on the city's obligation to assure the broadest possible access to cable service; and whether the proposal will meet anticipated community needs and serve the public interest.
(D) Based upon the application, the written and oral testimony and other material presented at a public hearing before the Council, and any other information relevant to the application, the Council shall decide whether to grant or deny an initial franchise application. If two or more competing applications are filed in response to a request for proposals, the Council shall grant the application that it considers to represent the highest and best bid in terms of the overall public interest. However, the Council is not obligated to grant any application for an initial franchise if it considers that the public interest is not served thereby.
(E) If the Council grants an initial franchise application, the Mayor and the applicant must agree on the terms of a franchise agreement within 90 calendar days from the date of the resolution making the grant. This period may be extended for good cause by the Council. If agreement is not reached with the Mayor within 90 calendar days or if the period is not extended by the Council, the franchise grant will be null and void without further action by the city.
(F) The text of a proposed franchise agreement must be consistent with the requirements of this chapter and be made available by the city to the public and advertised as required by city procedures. A proposed franchise agreement shall not be deemed inconsistent with this chapter by virtue of authorizing or permitting the provision of services other than cable service over the cable system and its facilities.
(G) After complying with the applicable requirements of divisions (C) through (F) of this section, the Council shall, following a public hearing, approve or disapprove the proposed franchise agreement by resolution.
(H) The grant of an initial or renewal franchise may be subject to a franchise acceptance fee in an amount not to exceed the city's out-of-pocket costs in considering the application, less the amount of the filing fee. Within 30 calendar days of the date the resolution approving the initial or renewal franchise agreement, the city shall notify the approved applicant of the amount of any franchise acceptance fee and its method of calculation. If the franchise acceptance fee is not paid within 60 calendar days of the date of the Council resolution approving the franchise agreement, the grant will be null and void. Prior to the franchise becoming effective, the approved applicant must demonstrate compliance with the surety, insurance, bonding and similar provisions of the franchise agreement.
(1989 Code, § 115.20) (Ord. 1988, passed 11-9-1992)